Legislature(2021 - 2022)BARNES 124
03/11/2021 01:30 PM House TRANSPORTATION
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| Audio | Topic |
|---|---|
| Start | |
| HB63 | |
| HB27 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 63 | TELECONFERENCED | |
| *+ | HB 27 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 63-ALASKA MARINE HIGHWAY OPERATIONS BOARD
1:36:42 PM
CHAIR HOPKINS announced that the first order of business would
be HOUSE BILL NO. 63, "An Act relating to the duties of the
Department of Transportation and Public Facilities; renaming the
Alaska Marine Transportation Advisory Board the Alaska Marine
Highway Operations Board; relating to the membership and duties
of the Alaska Marine Highway Operations Board; and providing for
an effective date."
1:37:11 PM
REPRESENTATIVE LOUISE STUTES, Legislator, Alaska State
Legislature, as prime sponsor, introduced HB 63. Shared HB 63
would begin the process of filling the Alaska Marine Highway
System (AMHS; "system") board with members who brought
membership and planning experience as well as expertise. In
addition to filling the board, HB 63 would shorten the long-term
operations plan review time from five years to three years.
Ideally, through the committee process, governance authority
would be gained, she added.
1:39:29 PM
KERRY CROCKER, Staff to Representative Louise Stutes, Alaska
State Legislature, introduced HB 63. Offering background
information, Mr. Crocker shared the first ferry, the M/V
Chilkat, started operating in 1957, before Alaska was a state.
When Alaska became a state in 1959, the M/V Chilkat became
Alaska's first state-owned ferry. That same year, Alaskans
voted to approve an $18 million-dollar bond to build four new
ferries and docks throughout Alaska. By 1963, the AMHS was
established. In 1984, Governor William Sheffield established an
AMHS task force to assess the system's structure and rate system
in the face of growing demand. It was determined the system was
archaic and had a lack of continuity and purpose, and new
management was recommended. Without proper business structure
in place, new boats were built throughout the 1960s and 70s,
after which several decades passed with no construction of any
ships.
MR. CROCKER put forth the reality that more than half the ships
in the AMHS fleet were more than 40 or even 50 years old and
required substantial maintenance costs. Slide 4 presented a
1989 memorandum from then-Department of Transportation & Public
Facilities (DOT&PF) Commissioner Mark S. Hickey to then-Governor
Steve Cowper, which acknowledged the system suffered greatly
from overall lack of continuity and top management since its
inception. The memo stated, "The combination of [our] inability
to articulate the comprehensive system plan, and the real and
perceived impacts resulting from the growing budget dilemma, has
served as the primary impetus for many to support the
establishment of a public authority as a way to address existing
problems." This statement still held true in 2021, Mr. Crocker
put forth.
1:42:30 PM
MR. CROCKER shared slide 3, which stated in 1984, the AMHS
taskforce determined a change in management structure was needed
to help provide business directive and success in the system;
more than 30 years later, in 2016 under the AMHS Reform
Initiative by Southeast Conference, McDowell Group, and Elliott
Bay Design Group, it was determined new management was needed to
invest in long-term planning and strategy. Finally, in 2020,
Governor Mike Dunleavy commissioned a marine operations board,
with members having the skills and experience of a ferry
commission. The marine operations board would have the ability
to assess, suggest marine business, enhance revenue, and reduce
costs, while possessing the experience and knowledge of
personnel management, service options, and ship maintenance. To
this end, HB 63 would replace the current AMHS advisory board
with a smaller nine-member operations board composed of the
Marine Highway Director, two members appointed by the Speaker of
the House, two members appointed by the Senate President, and
four members appointed by the governor.
1:44:55 PM
REPRESENTATIVE SPOHNHOLZ asked about the motivation behind
putting the head of the AMHS on the board.
MR. CROCKER said the thought was that if the director were on
the board there would be buy-in, as the current advisory
committee often made recommendations that were ignored.
REPRESENTATIVE SPOHNHOLZ asked if there may have been other ways
of accomplishing that, and perhaps make the director an ex
officio member who ensured recommendations did not go ignored,
along with potentially putting some other accountability
measures in statute.
MR. CROCKER replied yes.
1:46:27 PM
REPRESENTATIVE HANNAN asked whether the House Speaker and Senate
President would be appointing members from those bodies.
REPRESENTATIVE STUTES replied no, they would be members of the
public who had AMHS, DOT&PF, or business experience.
1:47:35 PM
REPRESENTATIVE MCCABE asked whether legislators would be on the
board and if one-year terms were mentioned because of transition
time.
MR. CROCKER replied yes, transitions from existing board could
take one year.
REPRESENTATIVE MCCABE said he thought it aligned with
legislators since it said those appointed by the speaker.
REPRESENTATIVE STUTES said it did need clarification, and
[members would come from public sector because] they did not
wish to make [choosing board members] a "political football."
1:49:34 PM
CHAIR HOPKINS asked how the governor's version differed from HB
63.
MR. CROCKER replied major differences were who chose the boards
and the board's terms: in the governor's version two members
were appointed to a one-year, two to a two-year, two to a three-
year, two to a four-year, and two to a five-year term. There
was also included in the governor's version a short-term
operations plan.
REPRESENTATIVE STUTES added the other difference in his version
the governor would appoint all members.
1:50:57 PM
REPRESENTATIVE MCCABE commented similarly to the Police Advisory
Council's being stacked with retired police officers, the AMHS
board may soon become stacked with union members.
MR. CROCKER replied the intent of HB 63 was to include only one
union member, which was already in statute.
1:52:30 PM
CHAIR HOPKINS said the governor's plan had a three-year and
five-year version and asked whether HB 63 updating only every
three years offered enough flexibility.
REPRESENTATIVE STUTES replied three years was a good amount of
time to see the progress the AMHS was making as it allowed the
chance to address problems before problems took hold.
1:53:27 PM
CHAIR HOPKINS announced that HB 63 would be set aside.